We are Doomed! DOOOOOMMED I say!

[DeltaV]

THE ULTIMATE FINANCIAL BUBBLE

The Fed's primary bubble-inflate/burst command signal is against its stop (zero = maximum commanded bubble inflation rate).

They wouldn't go negative, would they?

[choff]

In a way, quantative easing is going negative, only the Treasury dept. does it, not the Fed. The problem is they give all this money to big banks in the vain hope they're going to loan it out and stimulate the economy, but all the banks do is sit on it.

Remember that Treasury simply creates this money as a computer entry. When two congressmen from both sides of the house suggest doing the same thing to spend on infrastructure, everybody thinks its a terrible idea.

Henry Ford had the right idea when he raised his workers wages knowing they'd use the money to buy his cars. He could get away with it because the company was privately owned. Large corporations are sitting on $5 Trillion but would never dream of doing the same. Then there's how many Trillion offshore in tax havens.

It makes more sense for the 1% to just sit on the money and wait for the 99% to have the value of their property fall to nothing, then buy it all on the cheap.

[palladin9479]

THE ULTIMATE FINANCIAL BUBBLE

The Fed's primary bubble-inflate/burst command signal is against its stop (zero = maximum commanded bubble inflation rate).

They wouldn't go negative, would they?

It's a bait and switch article using emotional agitation and subliminal control to get you to buy stuff.

The first bit is correct, they use truth and mostly truth to get you believing them, then they slowly start inserting more and more emotional words and statements, more and more subjective info / statements until about mid way it's all BS. By then your subconscious has already bought into it and you'll believe whatever they say. At the end they pitch you a solution to the subconscious fear they created but that you think is your own.

Years of teaching myself to detect emotional manipulation had my warning systems going off with blaring siren like quality.

Preachers, religious missionaries, cult leaders and con artists use those exact same tactics.

[choff]

Unlike the normal routine where the government sells bonds to the fed banks for computer entry money, with QE the treasury buys cruddy derivatives from the banks for computer entry money.

[DeltaV]

Years of teaching myself to detect emotional manipulation had my warning systems going off with blaring siren like quality.

While Weiss pours on the hard sell towards the end, he and his group do have a good track record with respect to forecasting large swings, usually against the prevailing herd mentality.

In any event, the plot above (from an independent source) shows clearly that the Fed has run out of control authority and will do nothing more than continue to generate heaps of funny money.

They could raise interest rates from this ridiculous, savings-busting low, but they won't.

[Diogenes]

Deposit flight from Spanish banks smashes record in July

Data from the European Central Bank shows that outflows from Spanish commercial banks reached €74bn (£59bn) in July, twice the previous monthly record. This brings the total deposit loss over the past year to 10.9pc, replicating the pattern seen in Greece as the crisis spread.

http://www.telegraph.co.uk/finance/fina ... -July.html

[Diogenes]

Federal Reserve Announces Open Ended QE III

This is what makes the biggest difference: the Fed isn't announcing a limited amount of purchases. It's an open-ended program to buy bonds until the economy improves. From the statement: "If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability."

http://minx.cc/?post=332840

[paperburn1]

Federal Reserve Announces Open Ended QE III

This is what makes the biggest difference: the Fed isn't announcing a limited amount of purchases. It's an open-ended program to buy bonds until the economy improves. From the statement: "If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability."

NOW we are doomed...

http://minx.cc/?post=332840

[DeltaV]

It’s going to hold interest rates near zero as far as the eye can see ...

And it’s going to print $40 BILLION new dollars per month in an attempt to stimulate the economy — a whopping $480 billion per year!

In short, it’s doing the same things it has done since 2008 — but expecting better results:

Any way you look at it, that’s THE VERY DEFINITION OF INSANITY!

And as America’s great Fiscal Cliff approaches — the catastrophe that JPMorgan says will push America “head-first into the fiscal meat grinder” — the storm clouds are darker than ever.

[hanelyp]

...an open-ended program to buy bonds until the economy improves. ...

Hello Inflation. And since it fails to address why the economy is sluggish, it will do nothing to actually help. But if the inflation can be hidden for another 2 months, it may create an illusion of economic recovery.

[Stubby]

you are all great at pointing out doomy looking stuff

but how are you going to fix it?

the 2 proposals out there are:

tax the middle class even more i.e. tax the people losing their jobs, houses etc

or

tax the rich i.e. tax the people who might have to cut back on their monthly European vacations

Obama has been fought tooth and nail for the last 4 years by the Republicans. Every time he tried to implement his plans, he was thwarted.
So it is very unfair to say his policies failed. His policies were never given a chance.

And now somehow it is all his fault. What BS!

[Betruger]

you are all great at pointing out doomy looking stuff

but how are you going to fix it?

the 2 proposals out there are:

tax the middle class even more i.e. tax the people losing their jobs, houses etc

or

tax the rich i.e. tax the people who might have to cut back on their monthly European vacations

Obama has been fought tooth and nail for the last 4 years by the Republicans. Every time he tried to implement his plans, he was thwarted.
So it is very unfair to say his policies failed. His policies were never given a chance.

And now somehow it is all his fault. What BS!

You do not fix a cultural illness with politics.

[Diogenes]

you are all great at pointing out doomy looking stuff


Obama has been fought tooth and nail for the last 4 years by the Republicans. Every time he tried to implement his plans, he was thwarted.
So it is very unfair to say his policies failed. His policies were never given a chance.

Obama is an idiot. Get that through your head first. He is the stupidest man to ever occupy the White House, including Jimmy Carter. That said, He HAS gotten much of his plans implemented. Everything he was able to do has turned into a complete disaster.

The GM Bailout, Solyndra, Shutting down Drilling in the Gulf of Mexico, The Keystone Pipeline, Shovel ready projects, and so forth. He was allowed to spend $787 billion of "Stimulus" spending, and as near as we can tell, the money went to payoffs for Democrat party Cronies, with an enormous amount wasted on stupid "green" energy boondoggles.

At this point, not letting this idiot spend any more money is the most sensible thing which can be done. Giving this inexperienced little Man-child a chance was our first mistake.

but how are you going to fix it?

the 2 proposals out there are:

tax the middle class even more i.e. tax the people losing their jobs, houses etc

or

tax the rich i.e. tax the people who might have to cut back on their monthly European vacations

I am in favor of tax increases for Rich Actors and Movie Industry executives. ("who might have to cut back on their monthly European vacations") Repeal the Eisenhower tax cuts! We need to TAX these bastards who aren't paying their fair share!

And now somehow it is all his fault. What BS!

No, it's not all his fault. George Bush set the standard for Idiot spending, but this guy comes along and does everything that George Bush did wrong, but four times as much of it!

Beyond that, looking through history, there is plenty of blame for what a financial/social mess the country is currently. The roots of our worst problems though, stem from Wilson, Roosevelt, Johnson, Carter, and Clinton, with the current moron in the White House the star fool of them all!

[Diogenes]

You do not fix a cultural illness with politics.

Some of what we are currently dealing with is the unavoidable consequences of circumstances which came to pass. Much of our foolish economic policy was the result of the lucky circumstance that after World War II, the rest of the World was so devastated that American factories had little competition for supplying goods that the rest of the world needed.

The Economic prosperity which this circumstance brought us, resulted in Americans succumbing to the foolish notion that they could solve problems by throwing money at them. We became economically foolish because prosperity made it possible for us to behave so.

I am thinking that it couldn't have been stopped, because foolishness with Wealth is most likely an inherent aspect of human nature.

Social change from promiscuity couldn't have been stopped either. Anti-biotics coupled with the birth control pill eliminated two of the biggest reasons for unmarried couples to not engage in premarital sex. As a result, it broke the Marriage Minded women's monopoly on the supply of sex, much to the detriment of all women everywhere.

Couple excessive extra-marital promiscuity with foolish economic policy, and you get the "Great Society" with it's resulting mass of young hoodlum criminals emerging in the mid to late seventies, the reaped whirlwind of the previous wind sowing.


Could politics have prevented any of this? I don't know, but it certainly could make the problems worse.

[Diogenes]

Bernanke as a child.